Campus Crest Communities Inc. (CCG) Tuesday announced the commencement of an underwritten public offering of 6 million common shares. The company intends to grant underwriters a 30-day option to purchase up to an additional 9 million shares.
The company intends to use the proceeds to acquire the remaining 50.1 percent ownership interest in The Grove at Moscow, Idaho and the remaining 80.0 percent ownership interest in The Grove at Valdosta, Georgia for an aggregate purchase price of $16.2 million and to repay about $27.3 million of mortgage debt secured by these properties. The funds will be also used to reduce borrowings outstanding under the company's revolving credit facility and for general corporate purposes.
Campus Crest Communities, Inc., a real estate investment trust or REIT, engages in the ownership, development, building, and management of student housing properties under the Grove brand name in the United States.
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